UAMPS drafts all‑requirements contract; members to decide on long‑term procurement option
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Summary
UAMPS presented a draft all‑requirements project that would obligate participating members to have UAMPS procure most wholesale supply for a long term (draft ~25 years) with an exit/buyout mechanism; project governance would shift procurement approvals to a project management committee rather than individual city council votes for each PPA.
UAMPS staff outlined a proposed all‑requirements membership model and associated amendments to the pooling agreement that would give UAMPS authority to procure resource‑adequacy (RSE) positions and allocate costs to participating members.
The proposal: Under the draft contract, participating members would ask UAMPS to procure most of their wholesale power needs for the contract term (UAMPS staff said draft terms are likely to be in the 20–25 year range). Certain resources—internal generation and customer‑side rooftop solar—would be carved out as excluded resources. Members would be represented on a project management committee that makes procurement decisions for the all‑requirements project; the model moves away from an individual PPA approvals process to a committee‑level governance for long‑term procurements.
“Main purpose of the all requirements project is it’s gonna be looking at procuring resource for those members that are participating,” Mason (UAMPS staff) said. He added that the project is intended to capture economies of scale while still accounting for member differences.
Buyouts and exit: Staff said a buyout provision is part of the draft contract—members would provide extended notice (staff cited a five‑year notice/buyout convention in comparable agreements) and a buyout price would be calculated based on procured resources. Staff described the buyout as feasible but not inexpensive.
Pooling agreement amendments: Jackie (UAMPS counsel) said the pooling agreement amendments will give UAMPS the authority to purchase day‑ahead RSE positions on behalf of members and specify cost‑allocation rules (causation/entitlement shares). She described an exhibit approach so market policy details can be updated by the project management committee without returning the entire contract to each city council every time EDAM procedures change.
Member choice and timing: Participation in the all‑requirements project is optional. Staff said members can remain project‑based or elect to join all‑requirements; if a member opts to include future new projects in the all‑requirements procurement, contract mechanics and existing project commitments will require specific analysis. UAMPS plans member meetings and expects to circulate draft contracts for review in late 2025–early 2026, with council actions targeted before EDAM go‑live.
Quotes: “A member can get out of the all requirements project through a buyout provision,” Mason said. Jackie noted that the pooling‑agreement exhibit will allow the project management committee to adapt policies as EDAM and tariffs evolve.
Next steps: Staff will circulate draft contract language to members, meet with city attorneys and power boards, and present final proposals for council action. The board emphasized the need for member input on governance and buyout mechanics before any long‑term commitment is final.